Cocoa export revenues have dropped below $2 billion, a steep 25.4% drop in just one year, according to an analysis of statistics from the Bank of Ghana. The main cause of this decline is declining production, which has decreased by more than 11% in the same time frame.
The decrease in foreign exchange inflows from cocoa is made worse by smuggling, crop illnesses, and illicit mining practices (galamsey), all of which have had a major effect on yields. Ghana's cocoa production dropped from more over one million metric tonnes in 2021 to just over 500,000 tonnes in 2024 in just three years. Additionally, the country's capacity to get advantageous terms in the syndicated credit market has been undermined by this drastic decline.Even though Ghana and Côte d'Ivoire, its neighbor to the west, produce more than 60% of the world's cocoa, advance sales agreements have prevented both countries from profiting from the recent spike in cocoa prices. Despite a record 157% increase in world cocoa prices in 2024, Ghana's export earnings were at their lowest level since 2010.
Since 2022, when production and export levels began to fall, the nation's cocoa profits have been declining. A JoyNews Research analysis from October 2024 predicted that cocoa export revenue will drop below $2 billion, and that prediction has now come true.
Earnings falling below this crucial level puts further strain on Ghana's already precarious economy. It is anticipated that the ongoing drop in cocoa earnings will put additional pressure on the Ghanaian cedi and exacerbate the country's financial difficulties.